REG - PipeHawk PLC - Update on partnership with Unipart Rail Limited

PipehawkAnnouncement

18/06/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240618:nRSR7800Sa&default-theme=true

RNS Number : 7800S  PipeHawk PLC  18 June 2024

18 June 2024

PipeHawk plc

("PipeHawk", "Company" or the "Group")

 

Update on partnership with Unipart Rail Limited

 

PipeHawk is pleased to provide the following update in relation to Thomson
Engineering Design Limited ("TED"), one of the Group's subsidiaries, and its
progress with its partnership with Unipart Rail Limited ("Unipart Rail").

 

On 20 September 2022, it was announced by PipeHawk that TED and Unipart Rail
had entered into a Memorandum of Understanding to establish Unipart Rail as
the exclusive global distributor for a range of standard TED products, which
included TED's attachments, outside of the UK (the "MoU"). It was also
announced that as part of the MoU there were no minimum sales required to be
achieved to maintain this exclusive arrangement.

 

More recently, TED's partnership with Unipart Rail has further expanded beyond
the distribution of TED's standard products to include the manufacture and
distribution of TED's high output, self-propelled equipment.

 

With the above progress, the Company is pleased to report that whilst revenues
at TED recognised in the year to 30 June 2023 under the MoU were only £30k,
the Company expects this to have increased to approximately £0.5m in the year
ending 30 June 2024, with a further £250k of revenue already booked for the
year ending 30 June 2025.

 

Gordon Watt, Chairman of PipeHawk commented: "While it has initially taken
some time for orders to materialise under the MoU with Unipart Rail, we are
pleased to note the recent uptake in orders which includes both an increase in
value and frequency for both the attachments and high output machinery.

 

Our expectation is that TED's partnership with Unipart Rail will provide a
strong channel for growth in terms of revenue and profitability outside of the
traditional TED work streams, which historically has predominantly been UK
orders.

 

In addition to the MoU, TED and Unipart Rail have also recently won joint
funding from Innovate UK, Global Centre of Rail Excellence for the development
of Mobile Rail Panel Handler (the "Project"). This Project is well underway
and will see the development and manufacture of very innovative solution for
handling large rail panels.

 

The establishment of the latest Project between TED and Unipart Rail is
leading to increases in orders for TED and is providing for some very
innovative rail handling solutions that will soon be available to clients
globally. I am personally really looking forward to seeing how this Project
develops over the coming months."

 

-Ends-

 

Enquiries:

 

 PipeHawk plc                                Tel. No. 01252 338 959

 Gordon Watt (Chairman)

 Allenby Capital Limited (Nomad and Broker)  Tel. No. 020 3328 5656

David Hart / Vivek Bhardwaj

 

For further information on the Company and its subsidiaries, please visit:
www.pipehawk.com (http://www.pipehawk.com/)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDFRMPTMTABBTI